The Euro has been trading in a narrow range, though with very high volatility, giving false alarms for buy and stop loss orders. the volatility was ranging near the turning point of 1.4341, but succeeded to to achieve a positive breakout within the first week of 2010.
The Euro is currently at 1.4378, and is facing a major support level at 1.4341. Good buying orders could be placed, at these levels, with cautions on using stop loss below the 1.4341. The Euro is not expected to be in a narrow range in the coming period, as i believe it will continue its bullish behavior, at least for the short to medium term, with a potential target at around 1.4711.
These signs are supported by a bullish curved MACD that is about to cross the center line, as well as an RSI heading towards the oversold region, which entitles a downward pressure on the EURO in the very near term (which again explains the potential from current market prices to the turning point).
the best strategy is to go short this week at market levels, and make your long orders ready at the specified support.
Fundamentally, i also recommend going long for the Euro, especially versus the USD, as the touristic season helps, to some extent, to increase the demand on the European currency, which keeps the Euro in favor for the current times.
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